Section 17 - Apportionment of tax and settlement of funds of IGST ACT, 2017

               17. (1) Out of the integrated tax paid to the Central Government,––
                        (a) in respect of inter-State supply of goods or services or both to an unregistered
person or to a registered person paying tax under section 10 of the Central Goods and
Services Tax Act;
                        (b) in respect of inter-State supply of goods or services or both where the
registered person is not eligible for input tax credit;

                        (c) in respect of inter-State supply of goods or services or both made in a
financial year to a registered person, where he does not avail of the input tax credit
within the specified period and thus remains in the integrated tax account after expiry
of the due date for furnishing of annual return for such year in which the supply was
made;
                        (d) in respect of import of goods or services or both by an unregistered person
or by a registered person paying tax under section 10 of the Central Goods and Services
Tax Act;
                        (e) in respect of import of goods or services or both where the registered person
is not eligible for input tax credit;
                        (f) in respect of import of goods or services or both made in a financial year by
a registered person, where he does not avail of the said credit within the specified
period and thus remains in the integrated tax account after expiry of the due date for
furnishing of annual return for such year in which the supply was received,
the amount of tax calculated at the rate equivalent to the central tax on similar intra-State
supply shall be apportioned to the Central Government.
                  (2) The balance amount of integrated tax remaining in the integrated tax account in
respect of the supply for which an apportionment to the Central Government has been done
under sub-section (1) shall be apportioned to the,––
                      (a) State where such supply takes place; and
                      (b) Central Government where such supply takes place in a Union territory:
            Provided that where the place of such supply made by any taxable person cannot be
determined separately, the said balance amount shall be apportioned to,––
                      (a) each of the States; and
                      (b) Central Government in relation to Union territories,
in proportion to the total supplies made by such taxable person to each of such States or
Union territories, as the case may be, in a financial year:
             Provided further that where the taxable person making such supplies is not identifiable,
the said balance amount shall be apportioned to all States and the Central Government in
proportion to the amount collected as State tax or, as the case may be, Union territory tax, by
the respective State or, as the case may be, by the Central Government during the immediately
preceding financial year.
                (3) The provisions of sub-sections (1) and (2) relating to apportionment of integrated
tax shall, mutatis mutandis, apply to the apportionment of interest, penalty and compounding
amount realised in connection with the tax so apportioned.
               (4) Where an amount has been apportioned to the Central Government or a State
Government under sub-section (1) or sub-section (2) or sub-section (3), the amount collected
as integrated tax shall stand reduced by an amount equal to the amount so apportioned and
the Central Government shall transfer to the central tax account or Union territory tax
account, an amount equal to the respective amounts apportioned to the Central Government
and shall transfer to the State tax account of the respective States an amount equal to the
amount apportioned to that State, in such manner and within such time as may be
prescribed.
(5) Any integrated tax apportioned to a State or, as the case may be, to the Central
Government on account of a Union territory, if subsequently found to be refundable to any
person and refunded to such person, shall be reduced from the amount to be apportioned
under this section, to such State, or Central Government on account of such Union territory,
in such manner and within such time as may be prescribed.

Analysis by Experts

No explanations yet!!! Please, Login to provide explanation for this section.
Browse all sections of IGST ACT, 2017
Ask